Up, up and out of reach
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Much to the dismay of the salaried class, this is the second time that the market values of land rates have been revised, says M. Sai Gopal
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Photo: P.V. Sivakumar
Dreams shattered?: The hike in market value of land rates will further burden the middle class. –
True to their word, officials of the Department of Registration and Stamps have once again effected a revision in the existing market value of land rates. Mercifully, the department has decided not to tinker with the registration fee, which continues to be at 9.5 per cent.
Much to the dismay of the salaried class, this is the second time that the market values of land rates have been revised within a year in the city and elsewhere. This increase in the market values of land is bound to reflect and further burden the middle class, which is already struggling to own a dream house in the twin cities. As if rubbing salt to the wound, Registration and Stamps department officials have indicated that by next February, the market values would be up for revision once again.
Experts familiar with the real estate sector complain that Registration and Stamps department has increasingly become more of a revenue raising body than functioning as a welfare office, the basic preamble of which is to act as a protector of interests of the buyer.
On its part, the Registration and Stamps department has also been exercising its mandate to revise the market values for every six months. “Roughly put, the builder of an apartment or an individual house pays about 30 to 40 per cent of the total funds he collects from the seller towards taxes. These taxes go to local civic bodies, State and Central Government in various forms. So even a short increase would reflect on the end user,” points out C. Sekhar Reddy, president, Builders Forum of Andhra Pradesh.
For instance, till a few years back, the Registration and Stamps department used to raise Rs. 30 to Rs. 40 crore on an annual basis. The only option left for the middle class is the reduction of registration fee from the existing 9.5 per cent to below five per cent. “National Housing Policy allows the State Government to reduce the registration fee to as low as three per cent. However, to do this, there is dire need of political will,” Mr. Reddy felt.
Revision justified
Officials from the Registration department have justified their move by saying that it could bridge, to some extent, the wide gap prevailing market rates and the official value. The move is also aimed to check the flow of ‘black money’ into the real estate sector, they aver.
Every half-yearly, a committee of members drawn from the Registration and Stamps department, GHMC, HUDA, Revenue Department and Registrars decide and recommend the revised rates. “The registration fee has not been changed. The present rate of 9.5 per cent hold good for all municipal corporations. People should not be under the impression that registration fee has been changed,” informs District Registrar for Hyderabad, V. Srinivasulu.
Presently, the break up for the 9.5 per cent registration fee includes seven per cent towards Stamp Duty, two per cent towards Transfer Duty and 0.5 per cent towards Registration Fee.
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